Business Opinion: Cannes visit appears to have been worthwhile

Spending £50,000 of public money on attending a business event in the south of France was always going to raise questions.

But just a few days after returning, the Leicester and Leicestershire delegation to Mipim in Cannes has certainly gone a long way to justifying the use of taxpayers' money.

Officials say nearly 100 businesses have expressed an interest in investing or developing in the city and county as a result of its largest-ever presence in the 25 years history of the conference.

This is something which could never have been achieved by senior politicians and council officials at any other event, whether in Leicestershire, the UK or abroad.

I, along with Mercury managing director David Simms, was part of the delegation, giving me first-hand experience of the city and county's presence.

The large exhibition stand certainly attracted a lot of attention and was responsible for the lion's share of enquiries.

A series of seminars around the main exhibition on subjects such as our area's expertise in logistics and science and technology, led by senior delegates, also helped focus attention from potential outside investors on the area.

So, too, did the announcement that Leicester City Council and Leicestershire County Council plan to bid for nearly £400 million of public cash intended to expand the city and county's economies.

It is hoped the investment will make development sites attractive to private firms, which in turn would invest £2.5 billion in developing them – creating up 45,000 jobs by 2020.

The private sector response to this year's presence has been positive. Given this, it will be interesting to see the size of the public sector contribution to next year's Mipim delegation.

Another thing businesses are waiting to see is the Chancellor's budget tomorrow.

Tax looks to be the main focus this year – personal tax, employment levies and business rates.

Business rates – the commercial equivalent of council tax – are perhaps the most pressing issue from Leicestershire's point of view. This is because the county contains hundreds of small traders who are struggling to make ends meet as a result of paying business rates based on the value of their properties six years ago, during the economic boom.

A revaluation of commercial properties, which is likely to lead to a fall in rates, is not due to take place until 2017.

In his autumn statement in December, George Osborne capped April's rate rise at 2 per cent, instead of the 3.2 per cent it was due to go up by. However, this failed to grasp the nettle.

Many influential business figures now agree that the rates system needs radical reform. Let's hope we hear something about a possible overhaul tomorrow.